12-31

2007

2006

 Cash

$ 35,000

$ 32,000

 Accounts receivable

33,000      

30,000

 Allowance for doubtful accounts

(1,300)      

(1,100)

 Inventory 

31,000      

47,000

 Property, plant, & equipment 

100,000

95,000

 Accumulated depreciation 

(16,500)      

(15,000)

Trade accounts payable     

(25,000)      

(15,500)

 Income taxes payable 

(21,000)

(29,100)

 Deferred income taxes 

(5,300)

(4,600)

 8% callable bonds payable 

(45,000)

(20,000)

 Unamortized bond discount 

4,500

5,000

 Common stock 

(50,000)     

(40,000)

 Additional paid-in capital 

(9,100)     

(7,500)

 Retained earnings 

(25,200)

(64,600)

 Sales 

(558,300)

(778,700)

 Cost of goods sold 

250,000

380,000

 Selling expenses 

141,500

172,000

 General and administrative expenses 

137,000      

151,300

 Interest expense

4,300

2,600

 Income tax expense 

20,400  

61,200

$- 

$-

Cash Sales             

       $72,600

Collections on Receivables

      477,900

Purchases             

     (219,500)

Purchase of Equipment     

        (5,000)

Wages   

     (150,700)

Payments to Suppliers       

     (126,300)

Tax Payments       

      (27,800)

Borrowing            

       30,000

Repayment of Debt            

        (5,000)

Interest Payments               

        (3,800)

Sale of Stock        

       11,600

Dividends             

      (51,000)